‘Several thousand’ ride-hailing licences won’t cover demand, advisory panel says

Issuing “several thousand” licences to ride-hailing vehicles under a proposed regulatory framework will be insufficient to meet demand, a Hong Kong government transport advisory body has said, calling for a quota that will not compromise existing services. Speaking after meeting government officials on Monday, Professor Wong Sze-chun, chairman of the Transport Advisory Committee, said members did not suggest specific numbers for ride-hailing platforms, vehicles or driver licences. “[A level of] several thousand as proposed by some is insufficient,” he said, referring to suggestions from taxi groups. “I expect the initial level to be somewhere around 10,000.” Wong also urged authorities to determine a level that would not affect current services or taxis’ businesses. “We suggest that, following the implementation of the regulatory regime, the government conduct dynamic assessments in light of market developments and actual operational situations, and review in a timely manner whether adjustments to the number of ride-hailing vehicles are warranted,” he added. Last week, the Transport and Logistics Bureau revealed details of the legal framework for governing ride-hailing platforms, including penalties, without specifying the number of vehicle licences. The quota, which bureau chief Mable Chan said would be set before being included in the final gazetted document for vetting by lawmakers in mid-July, has triggered a heated debate between Uber, the city’s largest ride-hailing platform, and taxi groups. Uber warned that if the number of ride-hailing vehicle licences was capped at 15,000, it would trigger a 70 per cent increase in fares and result in 40 per cent of peak-hour ride requests being unsuccessful. It further said that such a level would threaten the livelihoods of at least 15,000 drivers. Several taxi groups earlier said issuing thousands of ride-hailing vehicle licences was unacceptable and would threaten drivers’ rice bowls. Addressing such concerns, Wong said on Monday that the impending legislation would encourage more drivers to work longer hours, so services could remain unaffected even with fewer working overall. He noted that only registered owners of vehicles approved for ride-hailing could operate the cars to offer such services under the legislation. Currently, only private cars with hire-car permits can offer paid services and online ride-hailing platforms including Uber, Didi Chuxing and Amap have been operating in the city in a regulatory vacuum. Amap is operated by Alibaba Group Holding, owner of the South China Morning Post. Government data from November 2024 to January 2025 showed that taxis dominated the point-to-point market with a 78 per cent share, while ride-hailing services handled the remaining 22 per cent of the 880,000 total daily passengers. The Legislative Council passed the Road Traffic (Amendment) (Ride-hailing Service) Bill in October last year, seeking to regulate the sector by requiring platforms, vehicles and drivers to obtain licences. Besides the owner-driver rule, the legislation also requires vehicles to be no more than 12 years old. It also stipulates that an approved driver should have at least one year of driving experience and must pass a dedicated test. The government is expected to invite applications for permits for ride-hailing platforms, drivers and vehicles in the third or fourth quarter this year, but it had yet to determine the cap on the number of each type of licence. The Monday meeting between the committee and the authorities also covered transport complaints in the fourth quarter of 2025. The number of complaints against taxis declined by nearly 30 per cent, to 2,759, compared with the same quarter in 2024. Most taxi-related complaints, at 995 cases, focused on the conduct and performance of drivers, followed by improper driving behaviour, at 762 cases, and failure to take the most direct route, at 471 cases.